Moody’s applauds Abu Dhabi with ratings upgrade

Ratings agency Moody’s has raised its rating outlook for the government of Abu Dhabi from negative to stable.

The agency praised the emirate for cost-cutting measures that have reduced government spending by 23% over two years.

It added that Abu Dhabi was better prepared than its neighbours to implement a value-added tax scheduled for next year and, potentially, a corporate income tax.

“The authorities have enacted broad subsidy reforms and expenditure cuts,” said a statement by the agency, which added that further progress had been made in diversifying revenue sources to reduce the emirate’s dependence on hydrocarbons.

Along with the other oil exporters in the Gulf, Abu Dhabi has been challenged by a persistently low oil price, which roughly halved in the final quarter of 2014 and has stayed at around $50 per barrel of Brent crude ever since.

©2017 funds global mena

Related Articles